REG - Ferro-Alloy Rsrcs - Operations Update

Ferro-Alloy ResourcesAnnouncement

02/03/2022 14:15

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RNS Number : 4172D  Ferro-Alloy Resources Limited  02 March 2022

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of  UK law by virtue of
the European Union (Withdrawal) Act 2018.

 

2 March 2022

Ferro-Alloy Resources Limited ('FAR' or the 'Company' or the 'Group')

 

Operations Update

 

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer
of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is today
providing an update on operations.

 

The Board of FAR is deeply shocked by the recent invasion of Ukraine and is
deeply concerned about the tragic consequences unfolding there. Whilst the
situation in Ukraine remains complex and changeable, the Company's operations
in Kazakhstan are currently unaffected with raw materials and supplies being
delivered to site as normal.

 

Although the Company's operating company in Kazakhstan has commercial
relationships with some  companies in Russia to procure certain materials,
there are alternative suppliers for all these materials in Kazakhstan and
other countries.

 

While exchange rates are volatile currently, the immediate impacts of the fall
in the value of the Russian Rouble by around 30%, and the fall in the value of
the Kazakhstan Tenge by around 15%, are to significantly reduce the Group's
costs given most of them are denominated in these two currencies.

 

Shareholders will be updated should the situation materially change.

 

The Company confirms that the on-going work programmes relating to the
preparation of the Bankable Feasibility Study are progressing as set out in
the announcement of 29 November 2021 and the Company looks forward to
providing a detailed update in relation to this in due course.

 

 

 

For further information, visit www.ferro-alloy.com
(http://www.ferro-alloy.com/)  or contact:

 

 Ferro-Alloy Resources Limited     Nick Bridgen (CEO)                info@ferro-alloy.com (mailto:bridgen@ferro-alloy.com)

 Shore Capital                     Toby Gibbs/John More              +44 207 408 4090

 (Joint Corporate Broker)

 Liberum Capital Limited           Scott Mathieson/Lydia Zychowska

 (Joint Corporate Broker)                                            +44 20 3100 2000

 St Brides Partners Limited        Catherine Leftley/Ana Ribeiro     +44 207 236 1177

 (Financial PR & IR Adviser)

 

About Ferro Alloy Resources Limited:

The Company's operations are all located at the Balasausqandiq deposit in
Kyzylordinskoye Oblast in the South of Kazakhstan. Currently the Company has
two main business activities:

a) the high grade Balasausqandiq vanadium project (the "Project"); and

b) an existing vanadium concentrate processing operation (the "Existing
Operation")

Balasausqandiq is a very large deposit, with vanadium as the principal product
together with several by-products. Owing to the nature of the ore, the capital
and operating costs of development are very much lower than for other vanadium
projects.

A reserve on the JORC 2012 basis has been estimated only for the first
ore-body (of five) which amounts to 23 million tonnes, not including the small
amounts of near-surface oxidised material which is in the Inferred resource
category. In the system of reserve estimation used in Kazakhstan the reserves
are estimated to be over 70m tonnes in ore-bodies 1 to 5 but this does not
include the full depth of ore-bodies 2 to 5.

There is an existing concentrate processing operation at the site of the
Balasausqandiq deposit. The production facilities were originally created from
a 15,000 tonnes per year pilot plant which was then adapted to treat
concentrates and expanded. Further expansion is being undertaken which is
expected to result in annualised production capacity of around 1,500 tonnes of
contained vanadium pentoxide plus significant by-product molybdenum.

The strategy of the Company is to develop both the Project and the Existing
Operation in parallel. Although they are located on the same site and use some
of the same infrastructure, they are separate operations.

 

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